Putting the pressure on progress for corporate governance

Recent developments suggest that governments in the GCC are beginning to take corporate governance seriously:

— On Jan. 1, 2011, Bahrain’s corporate governance code came into effect, covering public companies, with plans to extend the code to cover companies licensed by the Central Bank of Bahrain.

— In September 2010, the UN lent its support to the Pearl Initiative, a private sector-led program that aims to improve corporate governance and accountability across the GCC, through training and education.

— Since April 30, 2010, publicly listed companies in the United Arab Emirates have been subject to Ministerial Resolution 518, which sets out a number of key governance requirements. However, this resolution does not apply to companies and institutions wholly-owned by the federal government or a local government.

— Regional stock exchanges are more willing to punish fraud and illegal activity, and to defend the rights of minority shareholders.